CURRENT PART I - EARLY BIRD EDITION - 0730 PART II- MAIN EDITION-PUBLISHED AT 1130 AGENT FOR THE DEPARTMENT OF THIS PUBLICATION IS PREPARED BY THE A!R FORCE AS EXECUTIVE DEFENSE TO BRING TO THE ATTENTION OF KEY DOD PERSONNEL NEWS ITEMS OF INTEREST TO THEM IN THEIR OFFICIAL CAPACITIES; IT IS NOT INTENDED TO SUBSTITUTE FOR NEWSPAPERS. PERIODICALS AND BROADCASTS AS A MEANS OF KEEPING INFORMED ABOUT THE NATURE. MEANiNG AND IMPACT OF NATIONAL AND INTERNATIONAL NEWS DEVELOPMENTS. USE OF THESE ARTICLES HERE. OF COURSE, DOES NOT REFLECT OFFICIAL ENDORSEMENT. FURTHER REPRODUCTION FOR PRIVATE USE OK GAIN 15 SUBJECT TO THE ORIGINAL COPYRIGHT RESTRICTIONS. 1979 THURSDAY, JULY 26, 26 JULY 1979, Pg 3 PHILADELPHIA INQUIRER Ambassador to Moscow endorses SALT, says treaty can be verified By Lawrence L. Knutson BALTIMORE SUN WASHINGTON Despite his initial reluctance, Malcolm Toon, U.S. ambassador to the Soviet Union, yes-! terday endorsed the second Strategic Arms Limitation Treaty (SALT II), calling it "the best that conld have ! been obtained." Toon originally said that he might oppose the treaty on the ground that Soviet compliance might not be verifiable now that American intelligence posts in Iran have been lost. However, he said yesterday that the treaty was both verifiable and militarily sound. He said that, having received the; same briefings given President Carter, he had concluded that "no militarily significant violations of SALT i II could take place without detection." "I would not be here today to recommend this treaty if I did not believe that," Toon told the Senate Foreign Relations Committee. Toon, who has submitted his resig nation, remains as ambassador pend ing Senate confirmation of Thomas J. Watson Jr., a former IBM executive. A key member of the committee, Sen. Sam Nunn (D., Ga.), announced that he could not "in good con science" support ratification of the treaty, but he reserved final judg (See SALT, Pg 3) SUWftRY FROM THE WALL STREET JOURNAL 26, 1979 Pg 1 World-Wide ^ CARTER DEFENDED bis handling of ' Cabinet and staff change*. In his first news conference in eight 1 weeks, the President said he didn't have any regrets about his abrupt Cabinet shake-up. "I felt and still feel I had to make some changes in our Cabinet to create a new team to work with me," he declared. He said it was better than allowing the uncertainty to drag out. (See NEWS SUMMARY, Pg 26 JULY 1979, Pg 1 Nunn ties vote on SALT II g for arms spendin to_ '.__:more ' f v-7 'i * -. . . ;._.. •y CSAMJB *. OGRBORY Wojfttogtm B**ttmef TRaStai Sam -VftiBB (D.; Ga.), whose vote ou MIT H will to* toe of the most crucial in -the yesterday tfcal fee "eeibi not bi gocd conseieBGS" IKM& tfes toeatw fsS/em rrssidoet Outer sipifieaatly listers nodteur and ccnventkraal «ms program to keep pace If that is s»t dm*®, Senator Mean cootended, the ftnas-UmUatteo treaty "wffl become nothing more titan «a iaatrtEnsnt for registering omergi&g Soviet military superiority." The blistering attach by erne of the Sen-t ate's most respected defense authorities seemed likely to change dramatteally tt* contest of the SALT 4eUate. Up to now, many observers agree, the admirisiration case has been maktag steady progress' against opposition titai has often seemed scattered and fragment*! It is "atafidaatiy dear" frtim testimony of Harold Browa, the Do&qtm Secretary, and from erereot defsase ftl ator Nina laid, "that fee Cwto administration is Mt y«t prepared to eooapete effectively wftfc the Scvist Union iu the military arena." Tte Joint Chi^s oi Staff tow teW**, he acted, tS»t §ad> c^cetitioc & oeeei* Tfca "t^n^a o* proof1 is on tte Cwter the Prwideat's fallow ad of t toBO«tra»d wimageew of tfeif and economic <Aoie«j iMcetmry ^ «Dder> take and siaUto tbat commitoient," Mr. Nuan ddcar< T eeaki not H» |o*d eonsdenct sopport raaik»Uoa of the SALT II treaty." Senator Nuan read hhr carefully worded Hateanent at a Senate Armri Serviws Conn^itee hecifag ac the Joint (See NUNN, Pg 3) JAMES KIU-INOBCCK, C»ijtf'; 6URKKNT NEWS BRANCH, WASHINGTON POST 26 JULY 1979, Pg 1 Nunn Ties Vote On SALT to Mare Defense By Robert G. Kaiser Wasbinsrto*! Fos$ SUH Writer With a stroke that may have redrawn the battlelines in the SALT II debate, Sen. Sam Nunn (D-Ga.) said yesterday that the Carter administration can rfaii his vote for the treaty by committing itseif to subsantially increased defense spending. Nunn said he had seen a good case ior approving the pact but only if it is accompanied by additions to the next defense budget of about $7 billion on top of increases already planned by the administration. By quitting the school o" senators who criticize SALT II on its merits, Nunn gave a substantial boost to the treaty's prospects. He also established himself as principal spokesman for me large number of moderate senators who seem Increasingly willing to aetiept SALT II provided it is accompanied by billions o| dollars in new defense outlays. Last night, senior administration officials met to discuss how they could satisfy Nunn's concerns. Informed sources indicated that the administration is ready to negotiate with the Georgian. The White House has long regarded Niinh's SALT vote as potentially critical, since he has an impeccable record as a proponent of a strong national defense and a reputation for (See DEFENSE, Pg 3) OX 78765 HELEN YOUNG, ASSISTANT CHIEF, SERVICE, OX 52884 AGENCY EXECUTIVE CHfEF, FOR SPECIAL RESEAWOW SERVICES OR DISTRfBUTiON CAL.L HA«RV ZUBKOFr, ' v.fr* O WASHINGTON POST THURSDAY MORNING. 26 JULY 1979 26 JULY 1979 Pg. 5 - - - — Q - S Carter Opposed to Draft Registration onto a military procurement bill earlier this year. WMhtncten Fort SUM Writer In the past two weeks, however, a The Carter administration has of administration officials variety voiced strong opposition to a House letters to the Hill each one sent have 18-yearmeasure that would require the last reflecting at than olds to register for possible military stronger for peacetime disinclination a first service starting 18 months from now. opposition. finally and registration, "This administration opposes peaceShortly before Eizenstat's letter was time registration for the draft," White House domestic affairs adviser Stuart sent Monday, Defense Secretary HaE. E. Eizenstat wrote in a letter this rold Brown wrote Bep. Charles reof supporter a (D-Fla.), Bennett week to congressional critics of the newed registration, a milder note saylegislation. ing, "I oppose peacetime registration We do not believe It is necessary to at this point." impose this burden on our nation and Earlier this month, before a key its youth at this time whe$ there are vote on the issue in the procedural effective ways to improve the capabilCommittee, Budget DiRules House ity of the Selective Service System so Mclntyre, indicated the James rector it can respond quickly in time of opposition to regisadministration's emergency," Eizenstat's letter said. of a long letter course the in traton Administration witnesses; had indi- to the committee chairman reviewing cated little enthusiasm for the regis- the impact of the procurement bill. tration plan during hearings earlier The registration question has been this year. But as late as last week ticklish political issue. Supporters a both supporters and opponents of the worked hard to contest the idea have the of unsure measure remained would be the first step tothis that DepartDefense and White House of the draft in reinstatement ward ment's position. The Joint Chiefs of Staff had come place of an all-volunteer force. The draft ended in 1973, after years out in support of peacetime registrapassionate opposition, much of it of tacked was tion after the proposal By Felicity Barringer WALL STREET JOURNAL 26 JULY1979 by antiwar activists of the Vietnam area. The latest registration propoaf is being fought by a coalition of liberals and conservatives, including 40 members of Congress and such groups as the American Civil Liberties Union, Americans for Democratic Action, as well as by the executive director of the National Taxpayers Union. Supporters of registration have re peatedly called it "an insurance policy." But the effect of the escalating administration opposition to the bill "is devastating," Rep. Marjorie S, Holt (R-Md.) said yesterday. "The lobbying effort they're putting forth will certainly have an effect," Holt added. The $40 billion procurement bill, with the registration provision attached, had shown considerable strength when a key procedural vote was taken on the House floor last week. Rep. Richard C. White (D-Tex.), one of the chief backers of registration. said yesterday that the White House opposition "looks a little strange at this stage ... We hadn't heard from the White House at all" before this, he said. Pg. 17 Nunn Wants Military OiMays Increased As a Condition for His Support of Bv a WALK STREET JCWTRNAL Sta/f Reporttr WASHINGTON-Sen. Sam Nunn handed the Carter administration some tough conditions for winning his support for the Strategic Arms Limitation Treaty. The Georgia Democrat, whose hacking is considered essential for Senate approval of the treaty, said he couldn't support the SALT II treaty unless the administration agreed to huge increases in military outlays over the next five years. Although he stopped short of endorsing any outright figure, Sen. Nwn spoke *pprovinfh/ of military ertsmtat that fatcreases of V7c to 5% a yew in real outlay are necessary to meet the advances in Soviet military strength. In current dollars, this probably would mean annual increases of $15 billion to $20 billion a year, which could cause serious budgetary and political problems for the White House. Competing With Soviets Sen, Nunn said the administration's own budgetary plans and testimony of top officials "make it abundantly GJear that the Carter administration isn't yet prepared to compete effectively with the Soviet Union in the military arena." He added that "perhaps the administration will significantly change its course," but "the burden of proof in this regard is clearly on the Carter administration." Both opponents and supporters of the SALT treaty tried to take some encouragement from Sen. Nunn's statement SALT supporters said it provides a foundation for negotiations between the influential law* maker and the White House and suggests, if conditions are met, Sen. Nuns is fully prepared to vote for the treaty. * But critics noted that while the Carter administration has pledged to boost defense spending 3% a year, after inflation, higherthan-expected inflation has reduced the real rise. Thus, they contend, the administration's current planning comes nowhere near meeting Sen. Nunn's conditions. Efforts to satisfy Sen. Nunn, though. probably would cause trouble for President Carter both in terms of the treaty and in presidential politics. Already, several liberal Democratic Senators are threatening to vote against SALT as an insufficient arms control measure, and a new commitment for more military spending would strongly sway their decision. Moreover, an already politically troubled President Carter surely would face added dtfflcuKtes within key Democratic Party coMtttaaades if fee tried to significantly indMM (Mnttt spefidteg more wMte damping do«ft m ifcmmHi stcial programs. An Uicwm fei both areas would jeopardize the President's pledge to move ctoee to a balanced budget by next year's election. "Strong Commitment" Sought Although Sen. Nunn purposefully retained some flexibility to hit statement yesterday, he later said fee's 'very serious" about winning a "strong commitment" on this issue. "They (the administration) have to go much further," he said. "It all depends on what they do..." It's very unlikely the administration could win the necessary two-thirds vote in the Senate to ratify the SALT treaty without Sen. Nunn, espedaUy since Senate Minority Leader Howard Baker (R, Tenn.), is working against the treaty as it stands. Sen. Nunn's eventual decision is likely to have a strong influence on a number of undecided conservative and moderate Democrats. Separately, however, the administration's SALT prospects received a boost from Malcolm Toon, the hard-line former U.S. Ambassador to the Soviet Union. In testimony before the Senate Foreign Relations Committee, Mr. Toon said he had resolved earlier doubts in favor of the treaty and warned that Senate rejection could create "a crisis of confidence in U.S. leadership among our Western allies." He also suggested Senate efforts to rewrite the treaty would be a "leap of folly" that would be unacceptable to the Soviet Union. CHRISTIAN SCIENCE MONITOR 26 JULY 1979 Pg« 2 US envoy to Moscow urges SALT approval Washington Malcolm Toon, the outspoken US Ambassador in Moscow, said Wednesday he would urge the Senate to reject the SALT treaty if he thought approval would cause the United States to neglect its strategic programs. "If I thought we were going that route," he told the Senate Foreign Relations Committee in urging that SALT be ratified by the Senate, "I would strongly recommend we reject it. But Mr. Toon, who will soon be replaced in Moscow, said he was convinced the American people would support an increase in defense spending. CHRISTIAN SCIENCE MONITOR 26 JULY 1979 Pg. 2 Shooting of PLO aide may rekindle assaults Tel Aviv, Israel The shooting of Palestinian commando chief Zuhair Mohsen in France Wednesday threatened to rekindle a savage underground war of Middle East secret agents that has left a bloody trail from Cyprus to Rome in recent years. The guerrilla chief was said to be in critical condition. Tho PLO military chief was critically wounded outside his apartment in Cannes, France. In Netanya, Israel, meanwhile, a bomb planted by Palestinian guerrillas exploded at a bus stop, injuring 12 persons. The blast came only hours before Israel was to hand ba^k a chunk of the Sinai Peninsula to Egypt. THURSDAY MORNING, 26 JULY 1979 DEFENSE--CONTINUED good'political sense. Numerous senators, including a large bloc of south-, era moderates, are looking to Nunn for guidance in the SALT debate.. Administration qfficials expressed satisfaction yesterday with Nunn's statement, which the senator delivered at th$ Armed Services Commit- i tee's SALT II hearings. These officials emphasized Ni<mr,s irmlir-it .su.onort for the treaty, which he made explicit to a reporter later, repeating the proviso that the treaty must be accompanied by accelerated defense spending. But Nunn's conditions are expensive and could cost the Carter administration painful billions of dollars in its 1981 preelection budget unless Nunn moves off the firm position he adopted yesterday. Tn his statement, he called for real increases, after inflation, of 4 to ^ percent in the proposed $122.7 billion fiscal 1980 defense budget annually for the indefinite future. Despite the impact on efforts to balance the federal budget on the eve of a recession, Nunn's proposals seem to suit an emerging mood at least on the two Senate committees, Armed Serv-j ices and Foreign Relations, which i have been considering SALT*II. hearthese of out "What's come ings," a senior administration official said last night, "is a much more serious concern about where we stand visa-vis the Russians." The White House is said to be ready to deal with this concern by pledging stronger defense efforts, though there is no eagerness to go to the numbers Nunn proposed yesterday. One administration official said the senators seem most concerned about. Carter's commitment to a strong de- j fense, not Congress's attitude toward i spending the money. That concern! will have to be satisfied, this official i said, "though we may have to break a few bones around here to do it." Nunn specifically declined to offer a shopping list of defense programs that-'he would require hi return for his SALT vote. (He did offer such a list in a speech April 30, without tying! it directly to SALT II.) Instead, Nunn said, he wanted a new "commitment from the president to the people" that the United States will go well beyond current plans for defense spending in the early 1980s. "Only presidential leadership, can change these trends/' Nunn said, referring to the steady growth of Soviet military power compared ,.,|o. y,S,| I :, v ' power. 1 pro| .), (D-Colo Hart Sen. Gary s Service Armed of r membe SALT committee, replied in a statement that the treaty should not be blamed for "deep divisions in our society" , that have held down defense expenditures -i '' , in recent years, Sen. John C. Culver (D-Iowa), another SALT supporter, said the "same voices" who have insisted on a balanced federal budget are now asking for military programs that could create a $60 billion budget deficit. Nunn's statement was the high point of yesterday's SALT hearings, in which the Joint Chiefs of Staff continued to answer senators' questions. Critics of the treaty asked the chiefs numerous questions about thenearlier statements that the United. States would lose "essential equivalence" with the Soviet Union in the NUNN CONTINUED the treaty, arguing that it would restrain the Soviet buildup and leave the U.S. free to do what it needs to assure nuclear parity Malcolm S. Toon, U.S. ambassador to Moscow, fully endorsed the pact in testimony before the Senate Foreign Relations Committee yesterday, saying his anxieties about ability to detect Russian cheating had been removed by official briefings here on American monitoring systems. Those who think, as several senators do, that the United States could renegotiate the treaty and get a better deal are "profoundly wrong," Mr. Toon said. Such' an effort would "unravel" the treaty to American disadvantage. In his attack, Senator Nunn was careful to say he would "reserve final judgment" on how to vote until he hears more witnesses. But be laid down criteria for the administration that will be extremely exacting. Were the President to add the $6 billion or $7 billion to the next defense budget implied by Senator Nunn's demands, Mr. Carter would face severe attacks from liberals in the Democratic party in the £980 election year. Senator Nunn, noting current defense spending is not up to levels promised by the administration, said he "hoped" the executive branch would let the Senate examine the fiscal 1981 budget and five-year defense plan before a vote is taken on SALT II. That would be awkward. The budget normally is completed in December and sent to Congress in January. The Senate plans to vote on the arms treaty long before then. Mr. Nunn made it clear he will not be satisfied by generalities. "Only presidential leadership can change this situation," he told reporters. He made public figures indicating that the defense budget for fiscal 1980, the year starting October 1, will show spending growth of just 1.2 per cent on top of increases to offset inflation. The original target was 3.1 per cent. The original inflation estimates were "absurd," Mr. Nunn said. While the Joint Chiefs of Staff have testified that the budget does not meet requirements to set the military balance with the Soviet Union right or to meet commitments to the Western alliance, the senator said, Secretary Brown has given no testimony suggesting "these disturbing budget trends will not continue." Senator Nunn essentally was asking the administration for proof thaj H will do what it keeps saying the treaty permits it to do, and also that it will attend to the balance of conventional military forces not covered by SALT H. His summary of military leaders' advice to the Senate was: early 1980s, hopefully regaining it by the mid-1990s. Responding carefully, the chiefs several times said they thought the Soviets would have all advantage over the United States in this period. After the lunch break, Gen. David C. Jones, chairman of the joint Chiefs, sought to redress What he evidently thought was an overly gloomy impression by emphasizing that .throughout the 1980s the United States would retain the power to deter a nuclear attack or to retaliate successfully if attacked. A staff writer, Waller Pmcu*, co» to this article. SALT — CONTINUED ment pending an administration commitment to increase spending on defense projects. Nunn's position is expected to influence some of his colleagues because he is viewed as a serious and astute student of military affairs. He has been publicly uncommitted in the past. In other testimony, Helmut Sonnenfeldt, once a State Department deputy to former Secretary of State Henry Kissinger, said he believed it essential that Congress, before ratifying the treaty, "firmly establish" programs to deploy the mobile MX missile and to remove doubts about the transfer of U.S. Cruise-missile technology to European allies. Toon gave these arguments for Senate ratification: "I think it will introduce a substantial element of stability in our relations with the Soviet Union. "In my view it is important that the treaty places equal ceilings on the strategic arsenals of both sides, thereby ending a previous numerical imbalance in favor of the Soviet Union. "It preserves our options to build the forces we need to maintain the Strategic balance. "It enhances our ability to monitor Soviet actions and it is adequately verifiable an essential feature in any agreement with the Soviets since we cannot rely on good will. "It leads directly to the next step in controlling nuclear weapons and establishes a basis for further cooperation with the Soviet Union in this important field." Toon said U.S. negotiators could not have gotten a better deal from the Soviets on any specific issue covered by the treaty "without having to pay an unacceptable price in another part of the agreement." "If you believe that the United States will undertake and vigorously pursue the military programs necessary to reverse the current shift in the balance of power, you should ratify SALT II. If you believe SALT H will serve as a tranquilizer which will prevent our nation from taking the necesssary steps... it should be rejected. "In my view," Senator Nunn said, "the administration already appears to have succumbed to... the tranquilizer effect." CHRISTIAN SCIENCE MONITOR, Pg 2 26 JULY 1979 19 'boat people' rescued by Seventh Fleet oiler Manila made has Fleet Seventh The US its first rescue in the South China Sea under the new presidential orders to give Vietnamese refugees all possible assistance, a fleet spokesman said Wednesday. A fleet oiler found a boatload of 19 refugees about halfway between Vietnam and the Philippines late July 24. The ship's destination was not disclosed/Vietnam has condemned the United States and Italy for sending rescue ships as part of a psychological war against Hanoi aimed at prolonging the refugee exodus. THURSDAY MORNING, BALTIMORE SUN 26 JULY 1979 >6 JULY 1979 Pg- 8 Egypt gets 75-mile strip of Sinai in second phase of Israeli pullout Bir Nasseb, Egypt (AP)-Egypt hoisted its flag over this desert oasis yesterday and resumed control oi a 75-milelong strip of Sinai territory controlled by Israel since the 1967 Mideast war. Military bands from both countries played their national anthems, and honor guards stood at attention under a blazing desert sun during a brief ceremony marking the second phase of the five-part Israeli withdrawal from Sinai. An Egyptian soldier kissed the red, white and black flag, then raised it over this town, which was decorated with banners and giant portraits of President Anwar el Sadat. The town is near Abu Rudeis on the Suez coast. Under the peace treaty signed in March, two-thirds of Sinai territory occupied by Israel in the 1967 Arab-Israeli war will revert to Egyptian control by next January in the current five-stage withdrawal. All of Sinai vail be under Egypt's jurisdiction by 1&82 Simon Peres, the Israeli opposition leader, met with Prime Minister Mustafa Khalil to discuss the present round of Mideast peace negotiations. Those talks deal with Palestinian autonomy in Gaza and on the West Bank of the Jordan River. Mr. Peres called on Palestinians to join the peace process. "In the Camp David agreement, there is a say for the Palestinians, and there is a say for the Jordanians," Mr. Peres said. He .said the West Bank Palestinians are "for all practical and legal reasons citizens of Jordan." The 2,400-square-mile piece of Sinai territory returned yesterday is a mostly barren coastal plain, stretching 75 miles WASHINGTON POST 26 JULY 1979 Pg. 28 NEWS SUMMARY — CONTINUED The President was especially firm in denying that his newly elevated Chief of Staff Hamilton Jordan will have undue influence over policy. Labeling accounts of the decision "grossly distorted," Carter said Jordan "won't be chief of the Cabinet." The tough talk from, the President ap peared to be a calculated display of his so-called "new style" of firmness and decisiveness. Carter also called on Americans to force the Senate to pass his "windfall" profits tax on oil companies. The Senate, without a message from voters, would succumb to pressures from the "oil lobby," he said. Earlier, the White House announced that Hedley Donovan, retired editor-in-chief of Time Inc., was named by the President as a senior adviser. The White House said Donovan would report directly to Carter rather than through Jordan. » * * CONFIRMATION HEARINGS for two Cabinet appointees got under way. HUD Secretary Patricia Harris told the Senate Finance Committee she won't disagree with the White House if she becomes successor to HEW Secretary Califano. Once a policy decision is made, she said, "I won't argue." She ducked questions on welfare overhaul and national health insurance, but supported Medicaid funding for abortions and the antismoking campaign. Califano was dumped in last week's Cabinet shake-up, largely because of his independent style and run-ins with White House aides. The Senate Judiciary panel began hearings on the nomination of Deputy Attorney General Benjamin Civiletti to succeed Griffin Bell as Attorney General. Most committee members said they intend to back Civiletti's nomination in a vote later this week * # * or next. SOME AMTRAK ROUTES were given a reprieve by the House. In approving a three-year, $2.5 billion authorization bill, the House voted to trim the rail system by about 5,000 miles, or 18%. That was far less than the 43% cut proposed by the Transportation Department. The bill, which now goes to the Senate, would retain about half of the 16 Amtrak routes the administration wanted to eliminate. along the Gulf of Suf-i <tn<i exten-,iiujj ;>0 miles inland to a mouuain taagr u» v,esifern SUT*U. The region's only residents are about 4,000 Bedouin Arabs. Sheiks irom various Bedouin tribes observed the transfer ier*k mony from a platform erected nearby. The sector is known in Israel as the 'oil corridor" because Israel's Suez oil wells are located off its coast. Under treaty provisions, Israel keeps the welis, which provide n third oi its oil i-eatis, until November No United Nations soldiers were in sight during the flag-raising ceremony The mandate of the U.N Emergency Force, which has been stationed in Sinai since 1974, expired yesterday morning, although a U.N. spokesman said it would take six weeks for the 4.000 peace-keeping troops to dismantle their camps end Increased train ridership during the gasoline crunch enabled Amtrak's de fenders to block some of the passengerservice cuts. # * * ISRAEL TURNED OVER more of the Sinai land it captured from Egypt in 1967. Ceremonies marking the return of the 75mile-long strip of territory to Egypt were held at Bir Nasseb near Abu Rudeis on the Suez coast. It was the second phase of the five-part Israeli withdrawal called for in the peace treaty with Egypt. The Israeli pullout came only a day after the mandate for the UN peacekeeping force in the Sinai expired. The U.S. and Soviet Union want to replace the troops with unarmed UN observers, but Israel prefers a non-UN force. Under treaty provisions, Israel will keep the oil wells in the sector it handed over until November. The wells provide about a third of Israel's needs. A Palestinian guerrilla leader was critically wounded in the head by gunmen in Cannes, France. Zuhair Mohsen, chief of PLO military operations and head of its Syrian-backed Saiqa wing, was said to be in "hopeless condition." The PLO blamed the attack on Israel, but diplomats cited disputes among guerrilla factions. * * * SALT II suffered a blow when Sen. Sam Nunn (D., Ga.) said he couldn't back the treaty unless the White House agreed to huge defense-budget boosts. Nunn's backing is seen as crucial to winning Senate approval of SALT II. But Carter would encounter severe budget and political problems if he tried to meet Nunn's conditions. * * * All Nicaragua's private banks were nationalized by the five-member revolutionary junta. The junta also barred foreign banks from operating local checking and savings accounts. One junta member assured the business community that the bank actions don't indicate "the start of a chain of indiscriminate nationalization." # # * Sen. Edward Kennedy issued his own energy plan in a move that made him look even more like a presidential candidate. His $58 billion program features grants to residential, commercial and industrial users for Begin Needs Total Rest Reuter JERUSALEM, July 25 Israeli Prime Minister Menachem Begin's condition was described today as unchanged by doctors treating him for a small blood clot in his brain. But relatives, officials and friends have been asked to refrain from visiting Begin to ensure his complete rest. Begin was admitted to Jerusalem's Hadassah Hospital July 19 suffering from dizziness and vision problems. His doctors said today that, at this stage, "complete rest is the best medicine." Earlier, Begin received anticoagulant treatment. energy-saving efforts. The Massachusetts Democrat insisted his plan was intended to complement, rather than rival, President Carter's proposals. * * * Gov. Edmund G. Brown Jr. of California will announce formation of an exploratory committee for his campaign for the Democratic presidential nomination, a political aide said. Tom Quinn said in San Francisco that the committee "will be formed in the first half of next week." * * * A United Airlines DC10 made an emergency landing in Cleveland after one engine was closed down because of excessive vibration. The plane was en route to Newark, N.J., from Los Angeles. DClOs were returned to service two weeks ago after a 37-day grounding for safety checks. * * * A U.S. Seventh Fleet vessel picked up 19 "boat people" about 100 miles west of the Philippines, the Navy said. It was the fleet's first rescue since President Carter ordered it to help refugee boats in distress.
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